Applying for a mortgage isn't just about filling out forms (even though there’s plenty of those). It’s also about ensuring that you’re well prepared for the move.

Check your financial pulse

How's your credit score doing? This little number is super important because it influences the interest rate you'll get on your mortgage. Keep an eye on your credit report regularly to ensure that it’s accurate. If it's looking a bit low, consider giving it a boost by clearing up any errors and reducing your debts.

Double down on your savings

While putting 20% down is common, don't sweat it if you can't reach that number. There are plenty of mortgage options out there that can work with smaller down payments. For example, government-backed loans like FHA, VA, and USDA loans often allow for lower down payments and have more flexible qualification criteria.

Explore different types of mortgages

Time to brush up on your loan lingo. There are plenty of mortgages to choose from, and understanding the differences can help you hone in on the perfect one for you. Here’s a quick rundown of the top four most common home loan types:

Conventional mortgages: These tend to be good for folks who have strong credit and can afford a larger down payment.

FHA loans: These could be a good option for first-time home buyers or those with lower credit scores, thanks to a lower down payment requirement.

VA loans: Ideal for veterans and active-duty military members who want a zero down payment option.

USDA loans: Best for buyers looking to purchase in rural areas with no down payment needed.

Paperwork, paperwork & more paperwork!

Gathering your financial documents ahead of time can help you complete the application. Consider gathering the following:

• Pay stubs from the last 30 days based upon the date you fill out the application
• Tax returns from the past two years
• Bank statements from the past few months based on the date you fill out the application
• Asset statements like retirement accounts and other investments
• Information on debts and monthly expenses, for example, credit card statements, auto loan statements, student loan account numbers and balances.

Get pre-approved

You might be familiar with the terms prequalification and pre-approval. While prequalification is a helpful first step, it's important to note that it doesn't carry as much weight as a pre-approval. This is because, during prequalification, a lender does not verify your information.

A pre-approval comes in the form of a pre-approval letter from your chosen lender. Getting pre-approved for a mortgage gives you a clearer picture of how much house you can afford by detailing the exact amount you are approved to borrow. To get your hands on a pre-approval letter, you’ll need to provide your lender with all your financial information. Remember that handy paperwork check list? This is where it comes into play. Get yourself a folder and file it all in one place so it’s ready when you are. They’ll also review your credit report and other details to determine how much they’re willing to lend you.

Try to get pre-approved right before you start house hunting. Pre-approvals are typically good for 60 to 90 days, so make sure time is on your side to make the most of your pre-approval. Secondly, keep your financial situation stable while shopping for a home. Avoid big purchases like a car or opening new credit accounts as these can temporarily affect your credit score.

Once it’s time to apply for your mortgage you can expect the following:

1. Fill out a mortgage application

The first step is completing the mortgage application. This can usually be done online or in person at your lender’s office. Remember that folder of financials you filed away from your pre-approval? Have those in hand because you’ll need to provide this information on your application along with the details on the property you want to buy.

2. Review your loan estimate

After you have submitted your loan application, the lender will give you a Loan Estimate. This will detail all the information on your loan, such as the loan type, monthly payments, the interest rate and even all the nitty-gritty estimated costs for things like homeowners insurance, mortgage insurance, if required, estimated closing costs (including title insurance and settlement costs) and property taxes.

Look this over carefully to make sure everything makes sense. If anything’s unclear, just ask your lender—they’re there to help.

3. Lock in your loan

You will be asked by the lender whether or not you want to lock the quoted interest rate. Remember interest rates can change daily. If you choose not to lock your interest rate it will move with the market, either up or down. Interest rates are locked for a specific period of time. You will want to select a lock period that extends through the date you expect to close with the seller.

4. Loan processing begins

Once you've handed in your loan application and let the lender know you're ready to move forward, the loan processing kicks off. The loan processor steps in at this point. Their main task is to double-check all the details you've given in your application against the financial documents you've provided, like your bank statements, credit card statements and pay stubs.

They're also the ones who handle ordering the appraisal and coordinating other necessary services to wrap up the loan, like bringing in a settlement agent to close the deal. Since all this takes a bit of time, your processor might ask you to provide updated documents if your most recent ones are over 30 days old.

The loan process goes something like this:

• Verifying your income: The lender will contact your employer to confirm your employment and income.
• Appraising the property: An independent appraiser will schedule an appointment to evaluate the home’s value.
• Reviewing your credit report: The lender will look at your credit history and may ask you to provide explanations for certain items.
• Confirming assets and debts: The lender will verify the assets and debts you reported on your application.

5. The underwriter makes a decision

Your file will not be given to an underwriter until all the processing steps are completed. The underwriter is responsible for evaluating your loan application and deciding whether to approve it. They will assess your credit report, debt-to-income ratio, employment history and other factors to ensure you meet the lender’s eligibility criteria. If the underwriter hits a snag or needs more details, don't be surprised if they ask you for additional documents. It's all part of their mission to make sure everything checks out. The file will not proceed until the requested information is provided, at which point their review will resume.

6. Get ready for closing

Once the underwriter gives your loan the thumbs up, you'll get the green light that everything's ready to close. This means the lender will send over the money you're borrowing to the settlement agent. After you and the seller sign all the necessary closing documents, the settlement agent will handle passing those funds to the seller. You'll sign a few papers, and then—drumroll please—the keys to your new home will be handed over to you. Time to celebrate and pop open some bubbly!